Law of Ukraine on Banks and Banking (Law No. 2121-III of 2000)

Ukraine

(amended through 2009)

The Law of Ukraine on Banks and Banking (Law No. 2121-III of 2000) defines the structure of the banking system, economic, organizational and legal fundamentals for establishment, operation, reorganization, and liquidation of banks.

The purpose of this law is to provide legal support for the stable development and operation of banks in Ukraine in order to create an appropriate competitive environment in the financial market, protect legitimate interests of bank depositors and clients, introduce favorable conditions for the development of the economy of Ukraine, and support the domestic commodity producers.

This law discusses the following:

  • Independence of the banks;
  • Legal structure of the banks;
  • Various banking entities associated with the banking structure;
  • Establishment of banks;
  • Naming, registration, and licensing of the bank;
  • Grounds for state registration denial and revocation of banking license;
  • Preliminaries and prerequisites for establishment of banks with foreign capital;
  • Procedures for opening branches and bank reorganization;
  • Capital, funds, reserves of a bank, and also the ways and means to raise the required funds;
  • Capital adequacy norms and other laws related to management issues, controlling bodies, auditing commission, obligation in terms of protecting the interest of bank by means of risk management and internal audits related to the bank;
  • The rules and regulations regarding the credit operations of a bank;
  • The banking activity regulation and supervision along with its form, purpose, ground and scope of supervision; and
  • The guidelines on provisional administration, liquidation of the banks and methodology for liquidation.